New Tax Rules Challenge Charities but Car Donation Still Provides Benefits

The 2018 Job Act will bring many changes to US households. It will also significantly impact the nonprofit industry and how and why people choose to donate.The 2018 tax changes allow individuals a standard deduction of $12,000 ($24,000 for married couples). This means those who are more likely to itemize their deductions may not find it advantageous as it has been in the past.

Generally, It is expected that charitable giving will be negatively affected by the tax law changes. Charities are going to be challenged in many ways…I can say with confidence donating a car to charity through Advanced Remarketing Services & Car Donation Wizard is still (and will continue to be) beneficial and here’s how:

2018 Job Act and Car Donation Programs

Supply

In 2017 there were 269.7 million registered cars in the United States, with an average age of those cars being 11.6 years old (both record levels)… In 2016, it was estimated the number of vehicles 16 years and older on the streets is expected to grow from 62 million units to 81 million units in 2021. These numbers tell us a few things, first it is safe to say Americans are changing how they feel about cars and driving them longer than they used to. Second, it shows us there will be a significant amount of cars available for donation.

Environment

Car donation is impactful to not only the charity but to the environment, too. Many of the cars donated every year are end of life vehicles (ELVs).

The automobile is the most recycled consumer product in the world. Every year, over 25 million tons of materials are recycled from old cars. When a car is ready to be scrapped, almost the whole entity of the vehicle is able to be sold, repurposed, or recycled. In the U.S and Canada, the car recycling world produces enough steel to produce nearly 13 million cars each year.

Efficiency

We take the car donation business seriously and have proudly raised more than $140 million dollars to charity and counting. There are many car donation programs that promise to donate your vehicle to organizations that you may know little about and they are not willing to share a lot. Do not become a part of their scam by falling for catchy jingles and bad marketing. Car Donation Wizard only works with the very best 501(c)(3) organizations.  And, we return between 75-80% of the gross dollar from each car donation back to the charity unlike any other car donation program.

In truth, it may take months or years to see what the tax changes does for us individually and as a country. Let’s not forget, in the long run donating goods to charity is ultimately not about the money a person may receive in return, but rather the gratification of giving to an organization and the people that benefit from it.  

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Villains – Charity Scams and Scammers

Recently, the Federal Trade Commission and regulators for all 50 States filed complaints alleging that a family group and members of their church congregation bilked donors of $187 million over five years. That number again is $187,000,000!!!!!!

The complaints identify four connected groups operating as “personal fiefdoms” and “sham charities”. The complaints explained how the family members enriched themselves at the expense of donors and provided little benefit to the patients in need of support. According to the investigation, the defendants used the $187 million–donated to cancer patients for cars, gym memberships, luxury cruises, vacations, tuition, and to employ extended family or members of their church congregation with six-figure salaries.

Donors were fooled into thinking that they were helping patients battling cancer, but instead, 97% of every dollar went to the family and friends. The defendants allegedly used telemarketing, direct mail, websites and car donation programs to fuel their high flying lifestyle.

While outrageous and despicable, their crimes are unfortunately not unique. As long as there has been not for profit charities, there have been opportunists and criminals conducting frauds in the name of the weak and disadvantaged. These villains take advantage of weak charity oversight and limited enforcement resources to defraud donors and to prey upon the spirit of contribution that fuels charitable giving.

The area of Car Donation is especially vulnerable to charity scammers. Automobile donors are willing to donate a valuable automobile to a charity of their choosing. Fraud charities exploit this willingness and ‘acquire’ the vehicle for $0.00. Many Charity Car programs have little interest in delivering the money to the needy and vulnerable. This is especially true of some car donation charities related to ‘children’ or ‘kid’ causes. These ‘cars for kids’ programs fool donors into thinking that their donation will make a difference in the lives of children but if you take the time to really investigate you’ll find that very little of the ‘Car’ gets back to the ‘kids’ most just goes to support the processor; not education, not wishes, not health, no real benefit is delivered.

Advanced Remarketing Services was founded to be donor and charity focused. We work exclusively with well-known charities that are focused on service and known for their good deeds in the community. To date, ARS has raised over $95 million dollars for the charities we work with and returned over 80% of every gross dollar raised. NO OTHER NATIONAL PROGRAM COMES CLOSE.

For years Advanced Remarketing Services has been warning donors about the tricky business of charities charity scams. But ultimately the responsibility in policing these organizations doesn’t lie with the attorney generals or the charity watchdogs it lies with the donors. Take a moment to read our Suggestions for Choosing a charitable Car Donation program.

If you’d like more information about Vehicle Donation or Vehicle Donation Scams please contact us we’d be happy to help.

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Car Donation Tax Tips 2014

Donating a car can seem like a daunting task but here at Car Donation Wizard  we provide all of the necessary information that our donors need to know before they make that big decision.

Firstly, knowledge is key. There are a lot of car donation programs out there that claim to give high returns to their charity partners, when in reality the charities are lucky to receive 10%-30% of gross proceeds. 

Tip #1 : Ask how much of the proceeds from the sale of your vehicle go back to the charity and it’s missions/cause. Look out for charities or organizations that are partnered with charities that only tell you the net return- this should be red flag number one. 

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